An earlier estimate put annualized growth in the April-June quarter at 0.2 percent. The economy grew at a 2.1 percent annualized pace in January-March.

The latest data showed business investment fell by a smaller margin than reported in August, while consumer spending was higher. But both remain much slower than hoped for given the government’s targets for growth.

Prime Minister Shinzo Abe has proposed an extra set of stimulus measures to help prop up the economic recovery and spur more consumer and corporate spending, which are seen as crucial for sustaining growth.

The Bank of Japan is also reviewing its own lavish monetary stimulus policies and is expected to step up its efforts to combat deflation, possibly later this month.

Japan’s benchmark Nikkei 225 index fell 0.3 percent early Thursday, as continued strength in the yen against the U.S. dollar weighed on shares of export manufacturers.